For previous TA updates please refer to: Message 13291149
The volume was nice today, closing with 4.4M. The price closed -7/32 at 7. The important event, in technical terms, that occurred today was that the small pop at the open bounced off the top boundary of the current flag formation. This completed the rule of five -- a rule that says the price needs to bounce off the top and/or bottom flag boundaries five times before a breakout is in order.
While the price is closing sideways (last 7 trading days) within the flag formation, the closes have been toward the upper half of the flag.
As noted yesterday, the bollinger bands contracted. The lower bollinger band has the same pattern it had on 3/6, two days before the last rally.
Stochastics took a little hit today because of the selling pressure. They are still poised for the breakout, however.
Speaking of selling pressure, today saw a couple of unibombers that tried to spoil ICOM's good news. First, the broader markets were down (NAS -124, DOW -89). Second, INCA laid on the bid all day selling thousands of shares right around 7 (+- 1/16). The close at 7 was important because it re-confirmed a solid base in the 7 - 7 1/4 range. It should be noted that about 2/3 of the 4.4M trading today was at the 7 level.
Given the rule of five, above, ICOM is now ready to do a jail break. The rule says that it needs to close 3 percent above the upper boundary of the flag. This would be about 7 7/16. If the stock closes at or above 7 7/16, we should see the next rally to the top begin in earnest.
The link, below, to the bullchart site shows the current chart. The red and blue parallel, slanted lines, depict the flag. The bullchart technicians have picked up the same forecast for this stock as I have. I include the chart because it has been marked-up to show the flag. (I will not have the capability to publish my marked-up charts until www.jimbeamii.com goes live). bullchart.com
Of course, the above is based strictly on what I may or may not know about Zen and the art of reading tea leaves.
Good trading
jbii |
